Now Reading: No policy bars airport operators from owning airlines: Centre
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No policy bars airport operators from owning airlines: Centre
The Union Government has told Parliament that there is no policy barring major airport operators from holding substantial equity in or running scheduled airlines. Minister of State for Civil Aviation Murlidhar Mohol,…
The Story in Brief
The Union Government has told Parliament that there is no policy barring major airport operators from holding substantial equity in or running scheduled airlines. Minister of State for Civil Aviation Murlidhar Mohol, in a written response to a question from CPI(M) MP John Brittas, said the restriction exists only in certain public-private partnership contracts signed with the Airports Authority of India.
The government confirmed that AAI has received a request seeking a waiver from those contractual clauses, but has not examined it yet. IndiGo managing director Rahul Bhatia has said allowing airport operators to own airlines would create a massive conflict of interest and hurt consumers.
The Indian Opinion
This is being presented as a simple clarification, but the real story is about the pressure to relax PPP contract terms. IndiGo's warning about conflict of interest is not empty rhetoric given that the same airport operator could control slots, tariffs and competition. The government has not even examined the waiver request yet. The key question is: will the ministry study the impact on competition before taking a decision, or allow cross-ownership that could tilt the field?
Source: timesnownews.com
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